‘Beware of cyber fraud spike ahead of two-pot system’

Cyber security experts are warning of a spike in fraud targeting retirement funds, as the Two Pot system kicks off on the 1st of September. The system will enable withdrawals of up to a third of individual retirement contributions once a year, from R2000 up to the full balance of one’s savings pot.

Cyber security Expert Murray Collyer, says without advanced biometrics, the security of such withdrawals can be compromised.

“At the end of the day, this was a choreographed plan over many years by the government, which meant it gave criminals a great insight into where large pots of money were, and it was also historically an area where individuals weren’t active in, you didn’t generally go into your pension statement often, and you were taught to leave it alone. Now, those two together with the significant growth in social engineering has led to a significant increase in vulnerability.”

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